Alexander
Molyneux, President and CEO of SouthGobi Resources Ltd., has announced that the
company has signed a strategic alliance agreement with Winsway Coking Coal
Holdings Ltd. and a contract for the sale of 3.2 million tons of coal in 2011.
Under the agreement, SouthGobi commits to sell at least two million tons of
coal to Winsway per year. Winsway will work with SouthGobi to increase the market
value of SouthGobi”s Mongolian coal and will provide priority access to its
logistics assets. The agreement has a five-year term.

The
companies also signed a contract for Winsway to purchase 3.2 million tons of
coal in 2011. Pricing for the coal to be sold under this contract has been
agreed to for the first quarter of 2011, and will be determined by mutual
agreement in advance of each subsequent quarter. Coal volumes for delivery will
be divided evenly at 800,000 tons per quarter.

“The
2011 sales contract with Winsway represents the largest single coal-sales
contract in SouthGobi”s history and demonstrates fulfillment of key objectives
in SouthGobi”s growth strategy,” said Molyneux. “The strategic
alliance agreement also will increase volumes of SouthGobi”s coal sales and add
value over time, building on of Winsway”s demonstrated capability to deliver
Mongolian coal to consumers in China.”